Local News

Salem is giving $500 a month to 100 residents. Here’s why.

“We want Salem to be an affordable place for everyone, and a guaranteed income program offers an innovative approach to help achieve that goal,” Salem Mayor Dominick Pangallo said.

Salem’s Old Town Hall, constructed in 1816, sits in the center of Derby Square. CultureHouse

October 15, 2024

1 minute to read

Salem will give 100 eligible residents $500 a month for a year as it studies the impact of guaranteed income, Mayor Dominick Pangallo said in a statement.

“I’m excited to announce the launch of Uplift Salem, our guaranteed income pilot program to help directly address poverty in our community and contribute to the growing evidence from across the nation about the efficacy of these types of initiatives,” Pangallo said.

Applications for Uplift Salem open on Oct. 28. Potential participants must reside in Salem and have a family or household income below 100% of the federal poverty level based on household size, the statement said. Applications will close either after two weeks or 350 eligible applications, whichever comes first.

The pilot will include a study conducted by two Salem State University faculty researchers who will evaluate the effectiveness of the cash payments, the statement said.

“The City of Salem will utilize the learnings from this initiative to consider new ways of addressing poverty in the community and to add to the greater body of scholarship examining the impacts from such programs,” the statement said.

Randomly selected pilot members will receive their first payment by Dec. 1, according to the statement.

“Hopefully, the outcome of this year-long effort will be to add to the momentum for greater state and federal support for these programs and, most importantly, to lift up some of our most vulnerable neighbors here in Salem,” Pangallo said.

The city is partnering with UpTogether, a nonprofit that “leads and supports” guaranteed income programs across the country, according to the organization’s website.

“We know guaranteed income works to help families achieve economic mobility. They know what’s best for their families and can be trusted to make decisions that move them ahead,” UpTogether CEO Jesús Gerena said.

Uplift Salem will cost $685,000, the statement said. The city said those funds come from a private UpTogether donation and American Rescue Plan Act dollars.

“We want Salem to be an affordable place for everyone, and a guaranteed income program offers an innovative approach to help achieve that goal,” Pangallo said.